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November 11, 2022

Remembrance Day and Veterans Day Message

Lest We Forget

Today in Canada (Remembrance Day) and the United States (Veterans Day) is a day that has been set aside to honor those who have served and are serving in our respective armed forces – it is their collective bravery that has given our 2 great nations the freedoms that we enjoy and often take for granted.  Recently and over the decades, many of our soldiers have come home with all sorts of scars – physical scars, emotional scars, and mental scars. Others have not walked off the plane onto North American soil but rather have been carried off in flag-covered coffins. They have paid the ultimate price. They have given their lives for freedom.

The other common name for this day of course is Armistice Day which marks the date and time when armies stopped fighting World War I on November 11th at 11:00 am in 1918 (the 11th hour of the 11th day of the 11th month). Ten million combatants would die, including 60,000 Canadians and 116,000 Americans, before the “Great War” ended with Germany’s defeat on this day 102 years ago. The last 100 days of that war was an epic Canada-dominated finale that began with an all-out attack on German positions on August 8, 1918, a major turning point for the allies.

Here at BMR we hope that you will join us as we remember and honor our men and women who have served and who are serving in our armed forces, protecting our continent and standing up for freedom and liberty throughout a world that is more dangerous than ever. We are truly grateful for their bravery and sacrifices.

May God continue to protect and bless our 2 nations at this critical time in history. Freedom, in all of its forms and manifestations as we have been reminded over the past couple of years, should never be taken for granted.

In Flanders Fields

By Lieutenant Colonel John McCrae, May 1915

In Flanders fields the poppies blow
Between the crosses, row on row,
That mark our place: and in the sky
The larks, still bravely singing, fly
Scarce heard amid the guns below.

We are the Dead: Short days ago
We lived, felt dawn, saw sunset glow,
Loved and were loved: and now we lie
In Flanders fields!

Take up our quarrel with the foe:
To you, from failing hands, we throw
The torch: be yours to hold it high
If ye break faith with us who die,
We shall not sleep, though poppies grow
In Flanders fields.

Lest We Forget

The BMR Team



  1. Well put Jon. We can never forget those that made the ultimate sacrifice.

    Comment by Danny — November 11, 2022 @ 7:00 am


    Hive Blockchain Technologies Ltd. has released the earnings report for the second quarter ended Sept. 30, 2022 (all amounts in U.S. dollars, unless otherwise indicated).

    Hive achieved revenue of $29.6 million this quarter, by mining 858 green and clean Bitcoin and 7,309 Ethereum, which were subsequently sold to reinvest in new ASIC mining equipment. As such, Hive’s production of Bitcoin has increased by 4.5% quarter over quarter while the Company’s average daily production of Ethereum increased from 84.3 ETH per day to 94.9 ETH this quarter, prior to the September 15th, 2022, Merge date when we ceased mining Ethereum. However, in the previous quarter Bitcoin and Ethereum average prices were higher resulting in an increase of $44.2 million revenue over the previous quarter.

    The Company notes that Hive’s production of 858 Bitcoin this quarter represents an increase of 31% year over year, with the same period last year, having mined 656 Bitcoin reflecting a substantial growth in our operating hashrate. This is in large part a result of our New Brunswick facility expanding from 30MW last year, to operating approximately 17,300 new generation ASIC miners, operating at approximately 60MW of capacity. This large increase in quantity of Bitcoin production stands even as network difficulty has effectively doubled during this one-year period and prices have fallen approximately 60%.

    Frank Holmes, Hive’s Executive Chairman, stated “”We wish to again thank our loyal shareholders for believing in our vision to mine both Ethereum and Bitcoin. We are sad to see the higher margin from mining Ethereum gone and now will be more easily compared to our Bitcoin mining peers. It was an extremely challenging quarter for the global digital asset ecosystem, where we saw the capitulation of crypto prices due to the Proof of Stake ‘PoS’ Luna token blow up in the spring and subsequent contagion from over leveraged ‘shadow banks’, hedge funds and offshore exchanges. Strategically, we have not borrowed expensive debt against our mining equipment or pledged our Bitcoins for costly loans, thus our balance sheet remains healthy to weather this storm. We believe our low coupon fixed debt; attractive green renewable energy prices and high performing energy efficient ASIC chips will help us navigate through this crypto winter.”

    Hive achieved a gross mining profit margin of $15.9 million for the quarter, a 41% decrease over the prior quarter of $27.0 million due to lower Bitcoin prices. This decline in gross profit mining margin was predominantly driven by significant lower average cryptocurrency prices during this period which negatively affected us as well as the Bitcoin mining industry.

    Additionally, the Company’s gross mining margin of 54% this period is also a decrease from the gross mining margin from last quarter of 61%. On a relative basis Hive has been able to mine with healthy profit margins during periods of market volatility because of being globally diversified and enjoying low power costs in Sweden, Iceland, and Quebec.

    Furthermore, Hive’s average cost of production per Bitcoin was $9,894 (including cost of goods sold, not including SG&A) for the quarter ending September 30, 2022, a 23% reduction in cost from the previous quarter ending June 30, 2022. The company notes that from October 2022 onwards, with Bitcoin mining hash rates and Difficulty at all-time highs, it is expected that the cost of production for Bitcoin will increase for the industry at large, as less Bitcoin per Terahash is being rewarded at these difficulty levels.

    According to Anthony Power’s monthly industry research we are proud to have achieved and maintained the best operational uptime amongst all its peers, with Hive repeatedly emerging at one of the most efficient crypto miners based on digital assets mined per Exahash (commonly measured as quantity of mined Bitcoin per Exahash of reported hashrate).

    Mark-to-Market of Assets and Non-Cash Writedowns

    There is greater pressure in the accounting world to take non-cash charges against mining equipment that is required to create digital assets. The price of primary ASIC chips moves with the price of Bitcoin. On big quarterly down swings like the last couple of quarters we reduce the value of the Bitcoin held in our treasury and the resale cost of the mining equipment, however when Bitcoin prices rise, they are written back up through inventory holdings and flow through the income statement using mark-to-market accounting, while equipment often is not written back up as the threshold to do so is higher. This is a conservative accounting treatment which public crypto mining companies usually follow.

    Our adjusted EBITDA was strong for the quarter $18.8 million with the decline in digital asset prices during the quarter impacted our financial results by $2.4 million, in addition to a significant impairment of $26.2 million on mining equipment. Digital assets continue to be much more volatile than the stock market, thus our digital assets can significantly move income both up and down each quarter.

    Q2 Quarterly Summary- September 30, 2022

    – Generated revenue of $29.6 million, with a gross mining margin[1] of $15.9 million
    – Mined 858 Bitcoin and 7,309 Ethereum, equating to 1,380.2 Bitcoin Equivalent during the three-month period ended September 30, 2022
    – Adjusted EBITDA1of $18.8 million for the three-month period
    – Increased working capital by $3.3 million during the three-month period ended September 30, 2022
    – Digital currency assets of $64.9 million, as at September 30, 2022
    – Average cost of production per Bitcoin was $9,984, where the average Bitcoin price was $21,237, during the three-month period ended September 30, 2022. This also represents a 23% decrease in production costs of Bitcoin from the previous quarter of $12,823 for the three months ended June 30, 2022 (average price of Bitcoin was $32,511 during this period).
    – Impairment on miner equipment of $26.2 million during the three-month period ended September 30, 2022
    – Net loss before tax of $37.2 million for the three-month period attributable to impairment from the value of ASIC chips declining with the drop in Bitcoin and Ethereum prices and the mark-to-market Bitcoin HODL position

    Comment by Jon - BMR — November 15, 2022 @ 6:46 am

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